CC - Item 7D - Annual Merit Salary Adjustment - City ManagerFROM: SU TAN, HUMAN RESOURCES MANAGER
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DATE: SEPTEMBER 27, 2011
RE: ANNUAL MERIT SALARY ADJUSTMENT — CITY MANAGER
SUMMARY
On September 13, 2011, the City Council conducted an annual review of the City
Manager's job performance and provided a rating of Substantially Exceeds Expectations.
The City's established policies and procedures for merit salary adjustments apply to the
City Manager in the same manner as all other full -time employees. Under the City's
compensation system, a performance rating of Substantially Exceeds Expectations equates
to a merit salary adjustment of 5% within the established salary range. Last year, the City
Manager was awarded a 5% merit increase based on a Substantially Exceeds
Expectations performance evaluation but he elected to accept a 2.5% increase.
Staff Recommendation
That the City Council approve the merit salary adjustment within the salary range in
accordance with the city's established policies and procedures for all full -time employees.
BACKGROUND
The City's compensation system for all full -time employees provides for annual
performance evaluations and eligibility for merit salary adjustments within established
salary ranges. This policy reads as follows:
TEAM MEMBER SALARY ADJUSTMENT WITHIN SALARY RANGE BASED ON
JOB PERFORMANCE
Effective July 1, 2010, all full -time Team Members will be part of the 0 % -5% Merit
Based Compensation System. All Team Member salary increases, within the salary
range, will be based on merit through annual performance evaluations instead of
cost -of- living adjustments. Based on the Team Member's performance score on
his /her performance evaluation, a Team Member will be eligible for a merit
increase. Team Member salaries may not exceed the maximum salary range within
his /her respective job classification. The following is the performance rating
categories and percentage increases that a Team Member may be eligible for
based upon funding:
TO: THE HONORABLE MAYOR AND CITY COUNCIL
Raiing Percentage '
Unsatisfactory
0%
Needs Development
0%
Meets Expectations
2%-3%
Exceeds Expectations
4%
Substantially Exceeds
Expectations
5%
The annual salary range for Rosemead's City Manager classification approved by the City
Council is $146,205 to $197,807. A 5% adjustment to the City Manager's current salary
rate will bring the annual salary to $188,343, which is well below the salary range
maximum and prevailing rates in surrounding cities.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
FISCAL IMPACT
Funds for merit salary adjustments for full -time employees have been included in the City's
2010 -11 Fiscal Year Budget.
Attachment: City of Rosemead Strategic Plan Report Card